Palmed off: Bank of England to use tallow trace in plastic banknotes, not palm oil

 Mark Carney
That is not a vegan curry! Mark Carney shows the polymer £5 note's resilience to staining by dipping it in a saucy food, but the fiver's tallow traces have stirred up controversy Credit: Stefan Wermuth /WPA Pool/Getty Images

Plastic banknotes will continue to be made with a trace of tallow as the Bank of England has rejected calls to change production to use palm oil or another non-animal fat.

The new fivers - and, soon, the new £20 note - contain a tiny amount of the material as part of the production process.

An outcry from some vegan and religious groups led the Bank to look for alternatives to the greasy ingredient, and palm oil appeared to be the most likely contender.

Plastic notes are tougher than the old paper versions, so should last longer - saving resources and money over time Credit: Julian Simmonds

However, that too has ethical problems as it would be difficult for the Bank to reliably source sufficient quantities of the oil from sustainable sources. Palm oil has a record of coming plantations which are deemed to cause environmental harm.

More than 3,500 people responded to the Bank's consultation, 88pc of whom objected to the use of animal fat derivatives in the production of the banknotes.

However, 48pc opposed palm oil usage, and in an overlap 31pc opposed the use of both fats.

Furthermore, the Bank discovered that many British shoppers are already using plastics containing traces of tallow on a daily basis with little complaint, indicating that the opposition to the polymer notes may be an overreaction.


"They are also used in the production of plastics commonly used in alternative payment mechanisms, eg debit and credit cards and mobile phones. The animal-derived chemical additives are typically from tallow, a by-product mainly from livestock farming."

The controversy is not the only one afflicting the banknote decisions - a campaign to put more famous women on notes succeeded as Jane Austen's face will grace the new tenners Credit: ANDREW COWIE/AFP

On the plus side, the polymer notes last substantially longer than the paper versions, meaning fewer have to be made and so the environmental cost is lower overall. 

"The Carbon Trust has certified that over their full life cycle, the carbon footprint of a £5 polymer banknote is 16pc lower than the £5 paper banknote," the Bank said.

The expense of switching the production process is also an issue, with alternative ingredients estimated to cost an additional £16.5m over 10 years.

"The Bank fully recognises the concerns raised by members of the public, both prior to and during the consultation, and has not taken this decision lightly," the institution said.

"The Bank also understands that the decision it has reached may not address the concerns of all parties, but in making this decision, the Bank has considered very carefully the relevant factors and taken into consideration all of its objectives, including its responsibility to maintain confidence in the currency through the issuance of high quality, secure banknotes and achieve value for money for taxpayers."